Won an item @ $355.00US ($349.92CDN). Shipping $12.00US ($11.83CDN). Total $367.00US ($361.75CDN). Why was I charged $371.28 by PayPal?

[mohajaba]

Why does eBay give me a conversion rate from US to CDN very different from PayPal?

I recently won an item @ $355.00US ($349.92CDN). Shipping was $12.00US ($11.83CDN). Total by eBay was $367.00US ($361.75CDN). Why was I charged$371.28CDN by PayPal when I pay with my credit card? I was not aware that I am being charged extra for having the winning bid.

[heidilynn0_3]

Hi mohajaba.. The main reason is that you are buying $367. of foreign (US) currency. No institution , bank , credit card , Post Office or PayPal  converts free. PayPal's conversion fee is 2.5 %

[reallynicestamps]

Most people are unaware that exchange rates change constantly. On the micro level consumers deal, banks (and other financial institutions) will only change the rate a couple of times a day.

I have a nephew in The City (London) who does this for a living. He buys and sells currency, sometimes selling and buying the same currency eight or nine times a day, making money on the ups and downs each time.

Lots and lots of money. I'm trying to get him to write me into his will.